Retailer Profits & Consumer Price Hikes

Australians are being forced to shop around, or shell out, as confusing pricing allows energy suppliers to profit from a flawed market.

By Ansel Colburn,Electricity & Gas

Shockingly, while people are struggling to pay their bills, Australian retailers are taking a cut from them that is three to five times higher than the average in Europe*. At the start of 2018, AGL’s half-year profit had doubled from the previous year; while EnergyAustralia’s surged 123% and Origin’s profits tripled.

When bills go up, people are quick to cut back on power usage at home. But because rates vary so significantly between offers, and because competitive offers are only advertised to new customers, even the most energy-efficient household can end up overpaying if they haven’t shopped around.

According to a survey by Empirica Research of 1000 Victorian households, 7/10 would be able to save by switching to a new deal, with a typical family saving $330 a year**. But determining which offer is best amongst expiring discounts and overpriced standing offers, is difficult.

At ElectricityandGas.com.au we make it easy to understand the options that are available in your area, from a panel that includes suppliers big and small. By cutting through confusing pricing schemes, our goal is to give people the power to save in the face of a confusing market.

Here’s How You Do It:

Step 1:Select your State below. Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

While the cost of generating electricity is up, over the past decade, 26% of the bill increases have been due to retail margins. That’s because pricing is so confusing that consumers unknowingly stay on poor value offers.

It ends up being the consumers, either not knowing they’re on a poor deal or not taking steps to shop around who simply pay more for the same service.

In the past few years particularly, enticing discounts have been applied for a year, before customers are defaulted onto an expensive standing offer.

We think that Australians shouldn’t have to overpay for an essential service because of confusing pricing and expiring offers. That’s why we’re urging every Australian to review their energy bills and see what they could be saving.

Australian consumers can no longer simply trust that their energy company is going to look out for them, and the responsibility to not overpay is entirely in their hands. That’s where we can help.

At ElectricityandGas.com.au, you get access to our large-scale bargaining power alongside no mark-up policies from energy providers across Australia, making it easy to find the best deals in your area. This service makes comparison shopping for energy easy, and best of all it’s totally cost and obligation free.

This year alone, almost 150,000 Australians have chosen us to help them compare prices, switch and save. Compare today and find out what you could be saving.

Select your state to compare

*Disclaimer: Electricity & Gas compares your rates with the rates of our partner retailers, with the view of providing you the best overall offer from: ActewAGL, AGL, EnergyAustralia, Click, Dodo, Lumo, Momentum, Powerdirect, Q-Energy, Red Energy. “Up to 30%” listed is off electricity usage with one of our partner retailers off their default rates, for residents in VIC and is subject to terms & conditions. NSW, SA, QLD residents will have access to different discounts. Discounts & savings vary for consumers and businesses depending on distribution areas, residing state, electricity/ gas accounts and tariff type. AGL customers may be able to upgrade their energy plan, subject to terms and conditions.